Compare revenue at different book prices. Find the optimal price point that maximizes your total earnings.
Understand how price changes affect sales volume. Lower prices may increase volume but reduce total revenue.
Find the sweet spot where price × volume = maximum revenue. Often not the highest or lowest price.
Test actual prices with real sales data instead of guessing. Track results over time.
Price testing reveals your book's price elasticity. Inelastic books (low competition, strong brand) can charge more without losing sales. Elastic books (high competition) must price lower to stay competitive.
Test prices in 30-60 day windows. Track sales volume, revenue, and reviews at each price. Common test ranges: $0.99 vs $2.99, $2.99 vs $4.99, or $4.99 vs $6.99.
Most fiction finds optimal pricing at $2.99-$4.99. Non-fiction and specialty topics can often charge $4.99-$9.99. Series Book 1s perform best at $0.99-$2.99 when series LTV is high.
30-60 days minimum per price point. Shorter tests don't account for ranking fluctuations and seasonal variations. Track at least 2 full months of data.
Common for books with loyal audiences or low competition. If $4.99 outsells $2.99 in total revenue, stay at the higher price. Don't assume lower is always better.
Yes, especially for Book 1 of series. $0.99 often maximizes reader acquisition while series read-through makes you profitable. Track series revenue, not just Book 1.
Calculate exact earnings per sale at different price points.
Factor in series value when testing Book 1 prices.
Calculate if making Book 1 free is more profitable than $0.99.